In recent days, Bitcoin has once again faced resistance around $64,000, an important threshold, as investors look towards the US election deadline in November. One month before this decisive date, uncertainty reigns, and market fluctuations reflect this tension.
Bitcoin faces resistance from the pre-election market
Bitcoin reached a peak at $64,000 at the opening of European markets this Monday, October 7, 2024 before encountering resistance, which slowed its rise. In recent hours, according to CoinGecko data, the price of the crypto has stabilized around $62,200. The market seems to be waiting for the US elections in November before moving in a clear direction.
The prospect of the US presidential election, where former President Donald Trump will face Vice President Kamala Harris, is attracting the attention of investors, who anticipate different impacts on cryptos depending on the outcome of the vote, although a Consensus seems to lean in favor of a Republican victory in support of cryptos, while both camps have expressed rather positive positions towards these assets.
If betting on the Polymarket platform currently slightly favors Harris with 51% of the vote against Trump, it is clear that the outcome of this election is far from being decided, and the repercussions on the crypto market remain uncertain.
Economic factors and their influence on the bullish dynamics of Bitcoin
In parallel with the presidential election, other macroeconomic factors play a key role in the current evolution of the price of Bitcoin. Indeed, one of the reasons for the rise in crypto has to do with the US jobs report. Last week, the Bureau of Labor Statistics announced that 254,000 jobs were created in September, well above economists' expectations. The news helped ease fears of an impending economic slowdown. Thus, the publication of this data triggered an increase of more than 3% in the price of Bitcoin on Friday, with a peak at more than $62,300.
Investors see these figures as a catalyst for an upcoming test of resistance between $65,000 and $67,000. Indeed, Bitcoin could break through this ceiling if upcoming inflation reports, such as consumer and producer price indices, continue to show signs of economic stabilization. Additionally, any indication of 2% inflation in the United States could have a favorable impact on the market.
In the short term, Bitcoin's trajectory will largely depend on the results of the US presidential election and key economic indicators. While uncertainty dominates for now, investors agree that the medium-term outlook for Bitcoin remains optimistic, with prices potentially skyrocketing if macroeconomic and political catalysts materialize. However, the volatility inherent in the crypto market calls for caution.
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